Here's my plan for filing taxes this year

[HC5831]

I'm a college student with my only sources of income being the MGIB and poker. The MGIB is not taxable and I made $8320 playing poker online in 2004.

I do not plan to file. Nor do I think I owe any money.
8320-4850=3470 for the standard deduction
3470-3100=370 for the personal exemption
370-96=274 for playing the lottery
270-200=74 for gambling losses in Vegas
74-74=0 for gambling in a home poker game and casinos.

I calculate above that I can make deductions on all of my $8320 online poker earnings for the year through standard deductions and other gambling losses. I know I've lost more than $75 playing in home/card room games.

In addition, I could call my trip to Vegas a business expense and deduct traveling expenses which add up to $200 for gas and other expenses.

A lot of college students who play poker as their sole source of income and make under $10k should be in the same boat as I am. For them maybe daddy pays the bills or they were veterans also. Obviously this does not apply if you have another paying job. You would be stuck with paying all taxes on your poker income, in the tax bracket that you fall under.

I probably even have other deductions I could make. Renter deduction here in CA. School expenses, etc. I don't think I'm even close to having to pay taxes on my poker income if I deduct everything I can.

Does this make sense or am I thinking this out wrong?

HC

[StacysMom]

even if u take all those deduction, which seem fine to me, i think u still need to report it... then the forms will tell u to pay no taxes and u have the income reported.

[SwordFish]

[ QUOTE ]
I made $8320 playing poker online in 2004.


[/ QUOTE ]



2004 Filing Requirements
Single (under 65) -- $7,950



If you made more than $7950 you are required to file the forms, even if they result in zero tax due.


SF

[Niediam]

You have absolutely no idea how to file gambling winnings. Please do some research so you don't f*ck yourself.

[caggin]

Note: you can't take any exemptions if you're listed as a dependent on someone else's return (your parents or whoever).

With only $8k income, you probably don't owe (or you only owe a little), but you can't take most of the deductions you listed. If you take the standard deduction, you can't deduct gambling losses (itemized deductions only). You also can't deduct any "business expenses" unless you treat your gambling as business income, filing a schedule C and paying social security taxes (which is taxed on income minus business expenses, but BEFORE any deductions, so you'll be paying a lot more this way). You generally can't deduct school expenses, but there is an education credit you may be able to take.

If you're income is only $370 after deductions and exemptions, I don't believe that's taxed by either CA or the feds. Even if you don't owe, you may want to file (just to have a record you don't owe).

[TheMetetron]

First of all your stuff seems really screwy.

I'm guessing if that's your only income you can be claimed by someone as a dependent. Also, you can't take the standard deduction AND start itemizing your deductions as well. At the very least you are on the hook for tax of the $370 (which should admiteddly be nothing/low).

However, I see a problem you you saying you are independent with $8,320 in income.

[HC5831]

[ QUOTE ]
First of all your stuff seems really screwy.

I'm guessing if that's your only income you can be claimed by someone as a dependent. Also, you can't take the standard deduction AND start itemizing your deductions as well. At the very least you are on the hook for tax of the $370 (which should admiteddly be nothing/low).

However, I see a problem you you saying you are independent with $8,320 in income.

[/ QUOTE ]

You guys are right. I can't take the standard deduction and itemize. However, I will still deduct my other gambling losses from my winnings. I realise that subtracting winnings from losses is not the correct way to file, but that's how I'm doing it. If they want to come after me, so be it. But, I'm a small shark in the grand sceme of things, and I seriously doubt they'll come after me. In addion, I think some kind of eduction deduction/credit can be made. I may even have other deductions/credits.

As for the math, nothing screwy about it. The MGIB is the education grant given to all veterans of the military. It is NOT taxable. In addition, you are considered an Independent if you serve in the military.

I get $1150 a month from the MGIB. Which is enough to get by on in itself as a college student. Add 700ish a month in poker winnings and a college student has plenty of spending money.

So I'll file with zero being owed, because of my other gambling losses.

Thanks for the replies. /images/graemlins/smile.gif

HC

[IsaacW]

[ QUOTE ]
In addition, you are considered an Independent if you serve in the military.

[/ QUOTE ]
I thought you had to be a Republican /images/graemlins/grin.gif I don't think Mr. Bush would be very happy with you playing poker, especially online poker.

[Number4]

[ QUOTE ]
I realise that subtracting winnings from losses is not the correct way to file, but that's how I'm doing it.

[/ QUOTE ]

Yes, that makes perfect sense - why do it their way when your way is so much better?

[HC5831]

[ QUOTE ]
Quote:
--------------------------------------------------------------------------------

I realise that subtracting winnings from losses is not the correct way to file, but that's how I'm doing it.


--------------------------------------------------------------------------------



Yes, that makes perfect sense - why do it their way when your way is so much better?

[/ QUOTE ]

Do you always write without thinking? I explained before that I thought the odds of the IRS coming after a small time player like me was very small.

Why would I do it the easy way, let's see:

1. It's easy
2. It'll get the job done
3. I can claim good faith
4. I won't screw myself over by a harsh tax code

I would probably be fine by not filing at all. I think a lot of players, who make a hell of a lot more than I do, are not even going to file. But, I'll meet them halfway on this one. So many of you think you have huge balls when playing poker, but then pee your pants when you bend the laws a little...

HC

[Number4]

[ QUOTE ]
3. I can claim good faith


[/ QUOTE ]

You can claim good faith when you know you are doing it the wrong way? Now who's typing without thinking?

I really don't care how, or even if, you do it. But if are going to file, shouldn't you at least do it correctly?

[CORed]

I am by no means a tax expert, but I believe that in order to deduct gambling losses you have to itemize, which means you can't take the standard deduction.